China Steel reportedly is considering buying stakes in various overseas coal and iron ore mines, with a $2.5 billion budget to spend, over the next four years.

Quoting the Economic Daily News on Wednesday, Nine News said China Steel, Taiwan's largest steel maker, had been holding talks with five foreign companies for its investment projects. The various overseas coal and iron ore mines are mostly located in Australia.

The investment plans are part of the company's expansions to increase supply given the growing global demand for coal and iron ore.

China Steel brings in about 20 million tonnes of iron ore every year, mainly from Australia and Brazil.

China Steel has investments in Australia, Brazil and South Korea. In 2009, it paid $95 million in Brazil's Namisa SA, its first investment in a foreign iron ore miner.